Saturday, 8 December 2012

Kori Holdings Limited

For Records only

Kori Holdings Limited ("Kori" or "the Company") is placing out 28.2m shares of which 25.6m are New Shares and the balance of 2.6m are vendor shares at $0.25 each. The Company is basically a sub-contractor for construction projects.

Financial Highlights

Kori generated a revenue of S$34.7m in FY 2011 and made a net profit of $6m. For the first half of FY2012, the revenue was $26.6m and the net profit was $5.1m. At the date of issuing the prospectus, it has an order book of approximately $82.8m.

The offer has ended on 7 Dec 2012 and there will be no public tranche.

The offer price of 25c is at a discount to its NAV of around 31.93 cents and at very low single digit PE. The market cap at IPO price is around S$24.8m

The company will be majority controlled by Messrs Kori Nobuaki and Hooi Yu Koh (61.7%). A group pre-IPO investors came in at around 12.5 to 15 cents.

Fair Value

I will not attempt to derive a fair value but i believe the downside is limited with potential upside as it is being listed below its NAV and at a very low PE multiple. In fact, maybe the owners have been "short-changed" by the financial adviser but personally will not buy this at the open market due to its industry and small cap status.

still think can buy dutyfree, if you know the story. estimate is 50c-60c but i would sqay 42-45cents i would sell. just to let you know company did share buyback last 8 trading days totalling 2.5million shares at share price 0.38 average. today closing 0.38 i think 0.38 and 0.385 before next year can buy, once next yr: with Feb Results out, latest March 18: land deal go through with likely special dividend... should rise by then. I would load now but no more cash. all pumped into dutyfree total shareholding 255 lots av price 0.32